What is price risk (aka interest rate risk)? What kinds of bonds have greater price risk?

Suppose that Green Productions sold an issue of bonds with a [t]-year maturity, a $1000 par value, a [c]% coupon rate, and semiannual interest payments and that [x] years after the bonds were issued, the going rate of interest on bonds such as these fell to [r]%. At what price would the bonds sell? Round your answer to the nearest cent.

What do bond ratings reflect or indicate to investors about the borrower?

Below are the formulas for Exam 2:

We covered three scenarios for estimating all future dividends. State each scenario, briefly describe and state how we estimate the stock price under each scenario.

The real risk-free rate is [rf]%, and inflation is expected to be [h]% for the next 2 years and then [i]% thereafter. A 5-year Treasury security yields [r]%. What is the maturity risk premium for the 5-year security? Round your answer to two decimal places and express in percentage form (x.xx%).

A bond trader purchased a(n) [n]-year, [c]% coupon bond at a yield to maturity of [y1]%. Immediately after she purchased the bonds, interest rates fell to [y2]%. What is the percentage change in the price of the bond after the decline in interest rates?  Assume annual coupons and annual compounding. Do not round intermediate calculations. Round your answer to two decimal places and express in percentage form (x.xx%).

If you used Excel to do your work, please upload your Excel file to this question. If you did your work by hand, you should scan your work into ONE file using an app like Adobe Scan and upload the file to this question. If you cannot do that, you should e-mail me all pictures of your work IMMEDIATELY upon submitting the exam if you want partial credit for incorrect answers.

I found and read the course syllabus.

You buy a share of The Ludwig Corporation stock for $[P0]. You expect it to pay dividends of $2.15, $2.3650, and $2.6015 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $[P3] at the end of 3 years. Assuming that going forward, dividends are expected to grow at the same rate at which they have grown over the last three years, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock’s expected total rate of return ? Do not round intermediate calculations. Round your answer to two decimal places and express in percentage form (x.xx%).